The True Value of Business Continuity – A Paradigm Shift from ROI to VOI

February 27, 2019

The True Value of Business Continuity –
A Paradigm Shift from ROI to VOI

We jump-started 2019 with our first tea talk of the year by Mr. Allan Lee, Director of Consulting Services at Friday Concepts (International) as well as Head of the BCM Faculty at IERP, who spoke on the value of business continuity management (BCM) through the lens of Value on Investment (VOI). VOI helps measure the total value of “soft” or intangible benefits derived from continuity initiatives in addition to those “hard” benefits measured by ROI. Its approach is critical to allow funding for continuity planning efforts that provide the competitive differentiation necessary in today’s dynamic business landscape.

Business continuity is defined as getting your business up and running at the quickest time possible, with minimal losses to your business. Mr. Allan highlighted current perceptions concerning BCM. According to The Resilience Gap Report 2017, even though 96% of those surveyed believed that business resilience SHOULD BE a core element of their company’s overall business strategy, only 54% claim that business resilience is a focus. This statistic proves that although BCM is recognized among businesses it is not comprehensively integrated and practiced by organisations as intended because BCM does not support a strong ROI.

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5 Reasons to Get Certified as an Enterprise Risk Manager

January 17, 2019

5 Reasons to Get Certified as an Enterprise Risk Manager

As risk management is a relatively young discipline without an identifiable career path, those who forge a path in their respective industries can provide both their career and organization with a competitive advantage. Some wonder whether going through a certification program is worth the time and effort, but here are five reasons to consider:

The high demand for talent in the field
Though every organization can benefit from a robust risk function, it’s often only regulated sectors such as banking and insurance that will have established one. At the same time, risk management is increasingly becoming formalised and integrated. Organizations see the need for risk management in order to keep up with changing economic and market needs, but leaders are finding it hard to find the right talent to take up the challenge of implementing risk management best practices. Thus, those certified to have a set of skills and knowledge will help you stand out to prospective employers. Read more

4 Considerations for Fraud Risk Management

December 19, 2018

4 Considerations for Fraud Risk Management

Corporate fraud is a tale as old as time. The total costs of a fraud attempt and the complete set of risks facing a financial institution in the aftermath of a fraud attack often go far beyond the fraud losses itself. That is, organizations must also account for legal costs, investigation costs, reputational risks, as well as eroded confidence and customer loss. An effective fraud framework will include prevention, detection, and deterrence. Organizations often focus on prevention and detection and neglect fraud deterrence, which involves proactive rather than reactive measures. Given the high occurrence and costs of fraud, both financial and reputational, organizations with successful fraud management frameworks in place could have an edge over competitors.

With billions of dollars that can be lost due to fraud, organizations are increasingly concerned with fraud risk management, looking towards a more proactive approach rather than a compliance-driven one. Read on for four important considerations in fraud risk management: Read more

Corporate Culture and Risk Culture: The Chicken or The Egg?

December 10, 2018

Corporate Culture and Risk Culture: The Chicken or The Egg?


Last week, the IERP held a Chief Risk Officer Networking Group (CRONG), where Mr. Khairul Azwa, director of risk and compliance at a prominent GLIC, spoke on his experiences developing the risk culture in his organization. With a background in banking, he had started as a treasury dealer, eventually going on to become a risk manager at one of the GLICs in Malaysia. One of the challenges that he faced was setting a new risk management department from scratch. A task that he gave himself three to five years to develop. At the company, he noticed two traits that were ingrained in their DNA, firstly they have a strong culture of service and secondly, they cannot afford to make mistakes as that will have repercussions on not only the company, but also on careers, stakeholders and the country. Read more

Top 10 Skills for Succeeding in Enterprise Risk Management

December 3, 2018

Top 10 Skills for Succeeding in Enterprise Risk Management

Many have the impression that risk managers just focus on the technical aspects of risk. While the technical is important, it is just one of the aspects in Enterprise Risk Management (ERM). There are many skills needed to succeed in ERM but it is not just about number crunching, ‘challenging’ others, validating internal controls, any form of internal or external auditing, or EHS specialism. ERM is not all about identifying risk either. During our Tea Talk on 16 October, Mr. Ramesh Pillai, IERP® Chairman of the Board of Governors, spoke on the importance of EQ and soft skills in ERM. EQ and soft skills, while often vastly underrated, are what will differentiate the experienced, effective risk managers from the average ones.


These are the top 10 EQ and soft skills a Risk Manager or Risk Practitioner needs in order to succeed in Risk Management:
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Environmental Risks and Business Continuity Management

November 21, 2018

Environmental Risks and Business Continuity Management

The World Economic Forum has named climate and other environmental risks as a top global risk for for seven consecutive years. At the same time, leaders at both state and business levels have generally failed to build the sustainability, resilience, and agility needed to handle environmental threats.

According to a 2016 report by ClimateWise, there is a widening gap between insured losses and total economic losses from climate-related natural catastrophes. In 2015, this gap was more than USD 100 billion. Both countries and businesses do not completely understand their risk exposures and thus are inadequately prepared for adverse events. Read more

4 Ways Risk Management has Evolved

November 7, 2018

4 Ways Risk Management has Evolved

In response to a changing global economy as well as to regulatory and customer demands, risk management has evolved from a reactive and independent function, to one that is increasingly connected to strategic decision-making, with its own developing standards and best practices. In short, risk management has undergone considerable development: broadening its scope from just credit, market, and operational issues. Enterprise Risk Management (ERM) is currently the most advanced iteration of risk management, and seeks to improve on conventional approaches while taking into account current and future needs.
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Creating Value out of Enterprise Risk Management

October 22, 2018

Creating Value out of Enterprise Risk Management

At our Tea Talk session on 12th September, IERP® faculty member Zaffarin Zanal gave a featured talk on Creating Value out of ERM. Zaff started off by stating that—to strong murmurs of agreement across the room of risk practitioners—implementing ERM is hard.  The typical difficulty with implementing ERM is that while risk professionals understand the value for ERM, the top management (as well as the rest of the organization) might not readily see its value. Zaff noted that when something has perceived value, psychologically there is a ‘pull factor’ to it. It doesn’t require much forceful selling (the ‘push  factor’).

He shared that from the results of a 2017 ERM Benchmark Survey which showed that whilst enterprise risk management is a ‘popular’ framework being implemented in organizations, management and line managers are still quite resistant to it. The challenge lies in establishing that pull factor when risk management is so often seen as tedious, bureaucratic, and expensive. To treat this particular ‘acceptance risk’, it is important to understand the potential causes. Read more

3 Benefits of Developing Emotional Intelligence as an Enterprise Risk Practitioner

October 16, 2018

3 Benefits of Developing Emotional Intelligence as an Enterprise Risk Practitioner

In implementing enterprise risk management in your organisation, people will be your most important resource. It doesn’t matter whether you are seeking to establish or support enterprise risk management in your organisation, making strategic decisions for your company, or managing the talent.  Establishing a good network of working relationships is essential to your success as a risk practitioner, and developing your emotional intelligence is what will enable you to influence top decisions and culture in your organisation – without using overly aggressive, fear-based tactics.

Emotional intelligence is more than just being a decent human being (though some have trouble with that, too). It is the ability to understand emotions, both yours and others’, so that you can manage your behaviour and have healthy connections with others. Some are predisposed to having more emotional intelligence than others. However, it is a set of skills that can be developed and improved upon to the benefit of your career growth as well as your job effectiveness. Read more

Cybersecurity Oversight in the Boardroom

October 10, 2018

Cybersecurity Oversight in the Boardroom

A little more than a year ago, Equifax disclosed to the public that it had experienced a cyberattack, during which hackers stole the names, Social Security numbers, birthdates, and addresses of 147.7 million Americans – more than half the US population. Since then, other major data breach incidents have been reported worldwide, involving—among many other entities—Facebook, fitness tracking app Strava, Adidas, Under Armour, and identification authority Aadhar (compromising the personal information of all 1.1 billion Indian citizens registered under its service).

By now, it should go without saying that cybersecurity is not just an IT issue. Cybersecurity requires enterprise-wide awareness and effort. Cyberattacks hurt a company’s reputation and can lose your customers’ and suppliers’ trust: it can be difficult to shake off the public view that your organization is unreliable or inefficient.

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Business Impact Analysis: 5 Tips for Accuracy

October 3, 2018

Business Impact Analysis: 5 Tips for Accuracy

business-continuity-managementA Business Impact Analysis is a critical component of a Business Continuity Management framework – required to understand the organization’s interdependencies and full range of operational complexities.

The goal of a Business Impact Analysis (BIA) is to identify the crucial business functions that will be affected in the event of a natural or man-made disaster. BIA findings allow leaders to set up recovery priorities, plan out recovery strategies, allocate the appropriate resources, and determine important metrics such as Recovery Time Objectives (RTO), a measure of the maximum time within which business functions should recover as close to normal during disaster recovery. Read more

Is there Practical Use to the Statement on Risk Management and Internal Control (SORMIC)?

September 24, 2018

Is there Practical Use to the Statement on Risk Management and Internal Control (SORMIC)?

In Malaysia, the Statement on Risk Management and Internal Control (SORMIC) is a requirement. A Tea Talk addressing this was held at the IERP®’s  International Secretariat, featuring a presentation on “Crafting an effective and practical SORMIC” – by Mr. Ramesh Pillai, Group Managing Director of Friday Concepts Risk Consulting.

The MCCG and Defining “Risk Management”

Speaking on the SORMIC guidelines, Pillai noted that its main contributors/authors were auditing/accounting bodies; there were no contributions by risk practitioners. He drew attention to Principle B in the MCCG, where the Intended Outcome of a Risk Management and Internal Control Framework is that:

“Companies make informed decisions about the level of risk they want to take and implement necessary controls to pursue their objectives.

The board is provided with reasonable assurance that adverse impacts arising from a foreseeable future event or situation on the company’s objectives is mitigated and managed.”

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Global Conference Highlight: Using Enterprise Risk Management as a Strategic Tool

September 7, 2018

Global Conference Highlight: Using Enterprise Risk Management as a Strategic Tool

A common excuse given by those who are not convinced of the use of risk management is that there is ‘no time’ for it, especially if management often has to make quick decisions. However, Leonard Ariff Abdul Shatar, Group Managing Director of CCM Duopharma Biotech, notes that many mistakes (and the subsequent costs) could have been avoided if additional thought and effort had been put in. As a public-listed company, it’s a requirement for CCM to have a risk management function. For CCM Duopharma Biotech, risk management was split up as it was thought that the audit function was overshadowing it.

At CCM Duopharma Biotech, Leonard Ariff faced the monumental task of reshaping the business to resolve issues relating to ageing products as well as ageing assets. A key part of the strategy was to move into biosimilar medicine, which is medicine that is highly similar to their reference product (distinct from generics, which are exactly identical to their reference product). In order to build the capabilities required of this endeavor, the company needed to establish partnerships with companies already in the field — CCM had concluded that building in-house capabilities would take 8-9 years. Read more

Towards an Objective-Centric Approach to Risk Management

August 21, 2018

Towards an Objective-Centric Approach to Risk Management

With Enterprise Risk Management becoming increasingly institutionalized, global best practices are continually under revision as international standards-setting bodies such as ISO or COSO seek to improve on ERM methods and guidelines. A core development in recent years has been the recognition that an objective-centric approach to ERM yields greater outcomes compared to the traditional taxonomy approach. At the same time, the constant evolution of ERM practices means that there is often a gap where organizations are slow to correct outdated methodologies – due to the complexity and resources required to change existing processes, structures, and culture.

Conventional risk management is based on taxonomies, which create an often inductive process for risk assessment. Risk is identified and aggregated into a static and ‘stable’ set of categories, then prioritized according to likelihood and impact. The limitation to this approach is that risk is not stable. While taxonomies allow for a certain level of customization across different business units, their success and efficiency is predicated on the use of a standard and somewhat rigid set of categories and shared language – ultimately ineffective for large corporations facing wide-ranging risk complexities. Read more